The dollar index remains in a bearish trend this week
During this morning’s session, the dollar index retreated to 101.31, its lowest value this year
Dollar index chart analysis
During this morning’s session, the dollar index retreated to 101.31, its lowest value this year. After that, a bullish consolidation up to the 101.60 level was initiated. Here, we encounter new resistance that directs us again towards the daily open price. Now, we are at the 101.43 level and trying to stay above the daily open level on the positive side.
If the dollar index managed to move above the 101.60 level, it would form a new daily high, which would be considered very positive for the index. After that, we expect to see further progress to the bullish side. Potential higher targets are the 101.80 and 102.00 levels. At the 101.80 level, we will meet the EMA 50 moving average before continuing further recovery. The EMA 200 moving average, is an obstacle to our concrete move to the bullish side, is at 102.40 in the weekly open price zone.
The pressure on the US currency continues this week
For a bearish option, we need a continuation of yesterday’s negative consolidation back below the 101.40 level. After that, the dollar index would have to form a new daily low and thus confirm that there is no strength for a reversal. With the increased bearish momentum, all that remains is to watch the index retreat to a new low. Potential lower targets are 101.20 and 101.00 levels.
We highlight Crude Oil Inventories and FOMC Meeting Minutes from today’s economic news. For Thursdays, we have Initial Jobless Claims, S&P Global US Manufacturing PMI, S&P Global Services PMI, and an Existing Home Sale. Dollar volatility will be at its maximum tomorrow, and with it will all USD pairs, as well as oil and gold.
The post The dollar index remains in a bearish trend this week appeared first on FinanceBrokerage.
